Medical Transcription Service Business Plan

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Medical Transcription Service Business PlanFor Raising Capital from Investors, Banks, or Grant Companies!

1.0 Executive Summary

The purpose of this business plan is to raise $100,000 for the development of a medical transcriptionbusiness while showcasing the expected financials and operations over the next three years. MedicalTranscription, Inc. (the Company) is a New York based corporation that will provide transcriptionservices to doctors, surgeons, and allied health professionals within in its targeted market. The Companywas founded by John Doe.

1.1 Products and Services

The primary service rendered by the Company will be to take doctors and allied health professionalsnotes and voice recordings and transcribe them into formal records for later usage. Many healthcareprofessionals regularly use voice recorded messages when reviewing a patients file. As such, thesepractitioners often need someone (or a company) to take these voice recording and transcribe them into

paper or electronic files that can be accessed at a later time. The Company will provide this service todoctors and allied health professionals. The third section of the business plan will further describe theservices offered by Medical Transcription, Inc.

1.2 The Financing

Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to befurther discussed during negotiation. This business plan assumes that the business will receive a 10 yearloan with a 9% fixed interest rate.

1.3 Mission Statement

Medical Transcription, Inc.s mission is to become the recognized local leader in its targeted market for

medical transcription services.

1.4 Mangement Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in thehealthcare management industry. Through his expertise, he will be able to bring the operations of thebusiness to profitability within its first year of operations.

1.5 Sales Forecasts

Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials overthe next three years.


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1.6 Expansion Plan

The Founder expects that the business will aggressively expand during the first three years of operation.Mr. Doe intends to implement marketing campaigns that will effectively target physicians, surgeons, grouppractices, and allied health professionals within the target market.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Medical Transcription, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, Medical Transcription, Inc. requires $100,000 of debt funds. Below is a breakdown of howthese funds will be used:


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2.3 Investor Equity

Mr. Doe is not seeking an investment from a third party at this time.

2.4 Management Equity

John Doe owns 100% of Medical Transcription, Inc.

2.5 Exit Strategy

If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significantearnings multiple. Most likely, the Company will hire a qualified business broker to sell the business onbehalf of Medical Transcription, Inc. Based on historical numbers, the business could fetch a salespremium of up to 4 times earnings.

3.0 Products and Services

As stated in the executive summary, the Company will render medical transcription services to healthcareprofessionals within the target market. Primarily, this service consists of taking voice recorded notes fromdoctors and placing them into easily accessible text files for future reference.


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4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the transcription industry, the customerprofile, and the competition that the business will face as it progresses through its business operations.Currently, the economic market condition in the United States is moderate. The meltdown of the subprime mortgage market coupled with increasing gas prices has led many people to believe that the US ison the cusp of a double dip economic recession. This slowdown in the economy has also greatlyimpacted real estate sales, which has halted to historical lows. However, Medical Transcriptionbusinesses operate with great economic stability as doctors continue to generate revenues despitedrawbacks in the general economy. As such, physicians and allied health professionals will continue torequire outsourced transcription services despite the current economic climate.

4.2 Industry Analysis

In the United States, there are approximately 5,000 companies that provide transcription services to themedical industry. Each year, these service providers generate more than $2 billion dollars a year andprovide jobs for more than 50,000 people. Recently, the industry has had marked growth as cut backs inMedicare and insurance reimbursement plans have caused doctors to require a more streamlined methodof operating their practices. Outsourcing medical transcription is a cost effective way of eliminating theneed for a full time transcriber. The growth of this industry is expected to continue at a rate equal to thegrowth of the number of physicians and allied health professionals entering private practice.

4.3 Customer Profile

The average client of Medical Transcription, Inc. will be a physician, surgeon, or allied health professionalthat operates their own professional practice. As such, the demographics of these practice is large.However, Management has developed a generalized demographic profile of the averagemedical/healthcare practice that the business will target as its primary client base:

4.4 Competitive Analysis

This is one of the sections of the business plan that you must write completely on your own. The key towriting a strong competitive analysis is that you do your research on the local competition. Find out whoyour competitors are by searching online directories and searching in your local Yellow Pages. If thereare a number of competitors in the same industry (meaning that it is not feasible to describe each one)then showcase the number of businesses that compete with you, and why your business will provide

customers with service/products that are of better quality or less expensive than your competition.

5.0 Marketing Plan

Medical Transcription, Inc. intends to maintain an extensive marketing campaign that will ensuremaximum visibility for the business in its targeted market. Below is an overview of the marketingstrategies and objectives of the Company.

5.1 Marketing Objectives


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Immediately establish relationships with physicians, allied health professionals, and medicalclinics.

Implement a local campaign with the Companys targeted market via the use of flyers, localnewspaper advertisements, and word of mouth advertising.

Develop an online presence by developing a website and placing the Companys name andcontact information with online directories.

5.2 Marketing Strategies

Foremost, Mr. Doe will directly contact individual practitioners and group practices to showcase thebenefits of using the Companys medical transcription services. Each healthcare professional or group willbe given an extensive brochure showcasing the Companys streamlined medical transcriptions services,cost benefits, and contact information. Medical Transcription, Inc. will also use an internet based strategy.This is very important as many people seeking specialized services, such as medical transcriptionservices, now the Internet to conduct their preliminary searches. Mr. Doe will register MedicalTranscription, Inc. with online portals so that potential customers can easily reach the business. TheCompany will also develop its own online website. Finally, the Company will maintain advertisements inlocal and regional medical journals and allied health publications. These advertisements will showcasethe cost effectiveness of the Companys medical transcription services while concurrently providing them

with contact information.

5.3 Pricing

In this section, describe the pricing of your services and products. You should provide as muchinformation as possible about your pricing as possible in this section. However, if you have hundreds ofitems, condense your product list categorically. This section of the business plan should not span morethan 1 page.

6.0 Organizational Plan and Personnel Summary

6.1 Corporate Organization


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6.2 Organizational Budget


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6.3 Management Biographies

In this section of the business plan, you should write a two to four paragraph biography about

your work experience, your education, and your skill set. For each owner or key employee, youshould provide a brief biography in this section.

7.0 Financial Plan

7.1 Underlying Assumptions

Medical Transcription, Inc. will have an annual revenue growth rate of 16% per year. The Owner will acquire $100,000 ofdebt funds to develop the business.


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The loan will have a 10 year term with a 9% interest rate.

7.2 Sensitivity Analysis

In the event of an economic downturn, the Company does not expect a decline in revenues. As thehealthcare industry is generally immune from deleterious changes in the economy, Medical Transcription,

Inc. will be able to continually solicit new accounts and maintain its client base as healthcareprofessionals will need these services. Additionally, the business will generate extremely high marginrevenues from its medical transcription services, which will ensure the continued profitability of thebusiness.

7.3 Source of Funds

7.4 General Assumptions

7.5 Profit and Loss Statements


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7.6 Cash Flow Analysis


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7.7 Balance Sheet


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7.8 General Assumptions


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7.9 Business Ratios

Expanded Profit and Loss Statements


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Expanded Cash Flow Analysis


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Medical Transcription Service Business Plan

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